Serial Entrepreneurship Raj Jaswa January 2018 My 3 Different - - PowerPoint PPT Presentation

Serial Entrepreneurship

Raj Jaswa January 2018

My 3 Different Companies

• Technology: Semiconductor, Enterprise Software, Consumer
• Funding: Angel, VC, VC
• Size of Funding: <$1M, >$35M, -$10M
• Customer: PC mfrs, Global Corporations, Entertainment Companies
• Product: Chip, IT Services, Video Distribution
• Team: 80% Chinese, 50:50 US/India, 80% US
• Business Model: OPTi: never Lost money; Selectica: never Made

money; Dyyno: goal was profitable recurring $

• Exit: OPTi IPO 1993 $400M; Selectica IPO 2000 $5B; Dyyno shut
• perations , VCs trying to License Platform

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My Entrepreneurial Strategies

• Responsive to Market
• Fast Product Development
• Great Teamwork – Delegate, trust
• Fierce Competitor – Sun Tzu Art of War
• Lose the Battle, not the War
• Personalize your Customer relationships
• Total transparency
• Learn – Teach Team to Learn

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Globalization was at the Heart of the Strategy

• OPTi decided NOT to sell in the US/Europe

market till we DOMINATED the Far East

• Selectica built up a huge Technical Team in India

to serve Global 2000 accounts

• Dyyno served the Ethnic Diaspora worldwide with

Ethnic Content sourced Globally

OPTi Global Marketing Strategy

• Gave Far East Mfrs Time-To-Market (TTM)
• ver US mfrs
• Educational Seminars in Far East
• Launch with Press Release with 3 Key

Endorsements

• Flooded Comdex at Every Far East Booth with

Standard no-name Motherboard

• Demo rather than Technical Manuals

OPTi Global Marketing Tactics

• Product in Stock: available immediately
• Turn Key Mfg Package (TMP) includes Film, BIOS,

Manuals, U/L certification, Marketing Material

• Instant Payment: Taiwan L/C vs 30-60 days for

A/R in the US and Europe

• Local language Sales and Tech support
• 2 week trip to Far East, every 6 weeks
• Sales support in the US and Europe

Selectica Global Diversification Strategy: Complete Solutions

• Built up pre-emptively 400-person strong Tech

Team in Pune and Chennai

• Prepared pro-actively “mock-ups” for Global

companies like Hitachi and Samsung

• Provided on-site resources in Korea, Japan,

India, US and Europe cost-effectively

• Crack a vertical in US, expand globally (IBM ….

Target Hitachi; Cisco….Target Samsung; Dell…Target NEC)

Dyyno – OTT Broadband Services

• The odds:

– Video is free: Youtube, Justintv, Ustream – TV and Movies is mature industry – 5 years late: Neulion, Brightcove, Ooyala

• In 3 years (2011)

– 500+ TV channels using Dyyno – 300,000 broadcasters using dub – Cable companies, worldwide, licensing discussions for Dyyno OTT platform

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Dyyno TV Everywhere Solution

Dyyno TV Everywhere Platform

Cable Operator Content Aggregator Content Owner

Dyyno TV Everywhere Platform

Video CMS DRM Cloud Storage CDN Subs | Ads | PPVs Billing Flash | HLS Analytics

iPad Kindle Fire Galaxy Tab PC | Mac

Samsung

Smart TV

Android

STB Roku STB

HD Encoder Live TV VOD | Movies & TV Shows Network-DVR

Dyyno TVE Footprint

25+ Content Aggregators, Virtual MSOs 500+ TV Channels 50+ Countries 10+ Broadband TV Screens

1 Platform: Dyyno TV Everywhere

Dyyno B to B2C Globally: Niche Market targetting

• US market for on-line Video saturated
• Found Malayalam online TV customer: BOMTV
• Round the Clock support in Malayalam from the

US initially, then Pune

• Built FULL online TV distribution/billing platform

with help from BOMTV

• Used Reference and Full Platform to Target:

IPWORLDTV for Turkey (http://www.ipworldtv.tv) ; Ghana TV, etc

How Global helps your Business

• New Markets
• Extends Sales life
• Diversify … stabilize business cycles, currency

fluctuations, payment variations

• Less competition generally
• Attack Foreign competitors in home ground
• Economies of scale
• Improve your product line-up
• Improve your Supply Chain

Pitfalls of Global Business

• May not get paid…with no recourse: Indian customers!
• Looong collection cycles…France, Italy
• Time zone difference can burn out employees
• Language/Culture issues can cause all kinds of misunderstandings
• Expectations vary … Japan for perfection; Germany for accuracy; Taiwan

for lowest price; Korea for Delivery

• IP protection … Create competitors – OPTi chip database was wired out to

competitor by our Taiwanese engineer

• US DOCOMO security rules required clearance for 32-bit CPUs
• Impossibly expensive to shut down French sales office, Israeli

Development office, Legal liability of being Director in Indian company for 5 years after closing

• Handling Bribery and other payments for expediting services
• Public company Tax and Income consolidation cost and complications

How to do Business Globally

• Every Country has its preferred method for

dealing with imported products

– Taiwan: Get a Stocking Distributor – Japan: Trading Company as Rep – UK: Direct Sales – France: Use a Rep – Korea: Use a Rep – India: Set up a Subsidiary

Understanding Foreign Cultures

• Etiquette International in New York City, less than 25

percent of U.S. business ventures abroad are successful

• Relationship before business: Japanese marathon sales

cycles; Taiwanese business after dinner; Korea order after a drink; France no-hurry lunch with wine; Sweden Sauna and Ice-lake jump; Hong Kong 9-course dinner with 100 year old eggs; Japan stinky Tofu took the cake for me

• Bring your Interpreter and Drinker; study their culture and

be respectful – Koreans hate Japanese when they are drunk; French dislike the English; Germans have no respect for Italians and Spanish….

• Suit and Tie in Japan and Korea; Go informal in Taiwan and

Hong Kong; etc

What is your Foreign Sales doing?

• Can you Trust your own Foreign Distributor?
• Did your CEO/VP Sales get compromised in a

“massage parlour” or get caught with in Chinese “Honey Trap” or trapped by a Mata Hari?

• Did your FSE get wasted or sickened by food

poisoning by Customer?

• Did your FSE quote ridiculous prices and delivery

commitments, just to get the deal?

• What is your Foreign Salesman saying in Chinese
• r Korean or French?

Breaking into a Foreign Country

• International Trade-shows

– CeBIT, CES, …

• Hire your competitor or partner’s VP of Intl

Sales

• Hire Foreign Engineers studying in the US
• Sign up Intl Sales Reps by tracking your

competitors Sales offices

• Give “Talks” at Foreign Conferences

The Financial Benefit…

• A recent McKinsey study shows that

while global U.S. companies only account for less than 1 percent of all U.S. companies, they earned 25 percent of total U.S. gross profits

• Whatsapp…$19B valuation because 35% of

customers are from India

• Apple gets 60% of revenue and profits globally
• Tax avoidance (Apple has over 100B in cash

abroad, to avoid US 35% tax rate)

Summary

• Marketing is critical to a Startup’s success
• Marketing is creative
• Marketing responds to the opportunity in

the market